If market interest rate rises above coupon rate, then bond will be sold_____________?

A: Equal to return rate

B: Seasoned price

C: Below its par value

D: Above its par value

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Below its par value

An interest rate which is used in calculation of cash flows of bonds is called______________?

A: Required rate of redemption

B: Required rate of earning

C: Required rate of return

D: Required option

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Required rate of return

Type of options that permit bond holder to buy stocks at stated price are classified as______?

A: Provision

B: Guarantee

C: Warrants

D: Convertibles

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Warrants

Bond that has been issued in very recent timing is classified as_______?

A: Mature issue

B: Earning issue

C: New issue

D: Recent issue

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New issue

Bonds issued by local and state governments with default risk are____________?

A: Municipal bonds

B: Corporation bonds

C: Default bonds

D: Zero bonds

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Municipal bonds

Maturity date decides at time of issuance of bond and legally permissible is classified as____________?

A: Original maturity

B: Permanent maturity

C: Artificial maturity

D: Valued maturity

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Original maturity

Reinvestment risk of bonds is usually higher on______?

A: Income bonds

B: Callable bonds

C: Premium bonds

D: Default free bonds

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Callable bonds

Market in which bonds are traded over-the-counter than in an organized exchange is classified as__________?

A: Organized markets

B: Trade markets

C: Counter markets

D: Bond markets

Answer & Explanation Discussion
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Bond markets

Coupon payment of bond which is fixed at time of issuance____________?

A: Remains same

B: Becomes stable

C: Becomes change

D: Becomes low

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Remains same

Coupon payment is calculated with help of interest rate, then this rate considers as________?

A: Payment interest

B: Par interest

C: Coupon interest

D: Yearly interest rate

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Coupon interest

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